I have found the problem in my particular situation. And its a dumb situation as I get it.
I still could not get rid of the "Couldn't get connection factory client" problem (in one of the sources I actually read stated that this message was a bug and should be ignored in most cases. Most of the time the problem is smthing else.)
My "actual" problem was simply putting in GeoPoints in wrong format. I first did it it like:
GeoPoint point = new GeoPoint(19.2,-99.1);
and obviously it was wrong way of putting it. The numbers are expected to be bigger according to the documentation. So I used the following and it worked...
GeoPoint point = new GeoPoint(19240000,-99120000);
Sorry for the misleading question. But I ll leave it here. Maybe smo else would have the same problem.